On January 3, 2023, Xenex Innovations purchased computer equipment for $157,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $30,000. Assume actual usage in hours of: 2024 2025 2026 2023 2,150 1,940 4,000 3,140 Required: Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table provided below. Xenex's year-end Is December 31. (Do not round intermediate calculations.) Year Depreciation Expense 2023 2026 Straight-Line 2023 2024 2025 2026 2027 $ 25,400 $ SS Book Value at December S 25,400 S $ 25,400 S 25,400 $ $ 25,400 $ 55,400 30,000 2027 4,300 Answer is not complete. Depreciation Method Double-Declining-Balance Depreciation Expense 31 131,600 S 62,800 S 106,200 S 37,680 80,800 S 15,072 Book Value at December 31 25,120 x Analysis Component: Which method will result in the greatest: a. Total assets being reported on the balance sheet in 2023? In 2026? Units-of-Production Depreciation Expense Book Value at December 31

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Yu.27.
On January 3, 2023, Xenex Innovations purchased computer equipment for $157,000. The equipment will be used in research and
development activities for five years or a total of 10,000 hours and then sold for about $30,000.
Assume actual usage in hours of:
2023
2024 2025
2,150 1,940 4,000
Required:
Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table
provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.)
Year
Straight-Line
Book Value
at
December
31
131,600 $
25,400 $
25,400 $
106,200✓ S
2023 $
2024 $
2025 IS 25,400 $ 80,800 S
2026 $ 25,400 $ 55,400✔
30,000✔
2027
$
25,400 $
2023
2026
2026
3,140
Depreciation
Expense
2027
4,300
Depreciation Method
Answer is not complete.
Double-Declining-Balance
Depreciation
Expense
Book Value
at
December
31
62,800 $
37,680
15,072 X
25,120 X
Analysis Component:
Which method will result in the greatest:
a. Total assets being reported on the balance sheet in 2023? In 2026?
Units-of-Production
Depreciation
Expense
Book Value
at
December
31
Transcribed Image Text:On January 3, 2023, Xenex Innovations purchased computer equipment for $157,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $30,000. Assume actual usage in hours of: 2023 2024 2025 2,150 1,940 4,000 Required: Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.) Year Straight-Line Book Value at December 31 131,600 $ 25,400 $ 25,400 $ 106,200✓ S 2023 $ 2024 $ 2025 IS 25,400 $ 80,800 S 2026 $ 25,400 $ 55,400✔ 30,000✔ 2027 $ 25,400 $ 2023 2026 2026 3,140 Depreciation Expense 2027 4,300 Depreciation Method Answer is not complete. Double-Declining-Balance Depreciation Expense Book Value at December 31 62,800 $ 37,680 15,072 X 25,120 X Analysis Component: Which method will result in the greatest: a. Total assets being reported on the balance sheet in 2023? In 2026? Units-of-Production Depreciation Expense Book Value at December 31
b. Operating expenses being reported on the income statement in 2023? In 2026?
2023
2026
Depreciation Method
Transcribed Image Text:b. Operating expenses being reported on the income statement in 2023? In 2026? 2023 2026 Depreciation Method
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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